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NY jury finds Trump’s organization guilty of tax fraud: what are the reasons?

While not personally on trial, the former president’s company has been found guilty of fraud after a six-week trial.

Update:
Defamation lawsuit against Fox moves forward
BRENDAN MCDERMIDREUTERS

The Trump Organization has been found guilty of tax fraud. A 12-person jury took a day to decide that the organization had committed illegal acts, though Donald Trump himself was not indicted. However, prosecutors said Trump was aware of the scheme which lasted 15 years.

In the Summer former Trump Organization chief financial officer Allen Weisselberg pleaded guilty to 15 criminal tax fraud charges. After, a deal was struck between Weisselberg and prosecutors which required him to testify in this trial.

The jury heard that executives benefitted from extra perks that were not publicly listed, allowing them to declare lower salaries and reduce the company’s tax payments.

The ruling will not stop Trump’s 2024 presidential run but his numerous legal troubles could affect his popularity in the Republican primaries where he is expected to face a serious challenge by Florida Gov. Ron DeSantis.

What could the punishment be?

Yahoo! Finance consulted with a number of legal experts to gauge how severe the punishment could be for Trump, if prosecuted in New York.

Miriam Baer, a former Manhattan federal prosecutor, said that the financial penalties for the Trump Organization could be tough. She predicts that a conviction would lead to “a very severe fine” at the very least.

Dan Alexander, a senior editor at Forbes and author of a book on Trump’s businesses, explains that Trump’s personal wealth will take the hit of any financial punishment.

“If there are penalties placed on the Trump Organization, this won’t be coming out of some other shareholder’s pocket or something like that,” says Alexander. “If they get fined $5 million or $20 million or $100 million, that will be directly subtracted from [Trump’s] personal net worth.”